Monetary & Fiscal Policy
Authored by Allison Gates
Social Studies
11th Grade
Used 24+ times
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16 questions
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1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
When the US is facing a depression/recession, what type of monetary policy should we have?
expansionary (grow the economy)
contractionary (slow down the economy)
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
If the Federal Reserve were to lower the reserve requirement, what will most likely happen?
banks will have more money to lend out
banks will have less money to lend out
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
When interest (discount) rates fall, how will consumers respond?
they will borrow less money
they will borrow more money
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
If the Federal Reserve wanted to slow down the economy/reduce consumer spending (contractionary), what would they do to the discount (interest) rates?
increase
decrease
keep them the same
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
If the Federal Reserve wanted to increase the money supply (expansionary), what would the Federal Reserve do with government securities/bonds?
Buy them from banks (pay the banks money for the bonds)
Sell them to banks (banks would pay the Fed for the bonds)
None of these, bonds don't effect the money supply
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
When the U.S. economy performs poorly, many people look to the government to take action. If the government cuts taxes, which would probably occur?
bank failures would increase
the stock market would collapse
people would have more money to spend
the government would balance the budget
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Which of the following best describes an economic upswing?
High Unemployment
Low Production
High Inflation
High taxes
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